Miami Beach waterfront homes located on Star Island, Palm and Hibiscus Islands, the Venetian Island chain including San Marino island, Fisher Island, and Sunset Islands have drawn the wealthy and famous since the early 1920′s. Starting with such famous (and infamous) celebrities Al Capone, Lou Walters (father of Barbara Walters), Jackie Gleason, and many others- Miami Beach island communities offer the most sought-after waterfront luxury homes and estates in the world.

Miami Beach Palm Island Homes

These exclusive Miami Beach homes and estates are surrounded by the beautiful waters that form Biscayne Bay. As of today, Star Island, Palm, and Fisher Islands are the home (and in some cases the second and third homes) to famous residents and celebrities such as Rosie O’Donnell, Gloria Estefan, Oprah Winfrey, Sean Combs, Shaquille O’Neal, Tommy Mottola, and many of the world’s most elite business and political leaders.

Miami Beach's Elite Homeowners

As part of my marketing strategy of the past few years, I travel regularly to international real estate trade shows and meet with Brokers from around the world.  I’m usually asked about the state of Miami Beach luxury real estate (especially demand for waterfront single family homes).  Those with the financial resources (both from USA and International clients) ask about the possibility of purchasing a foreclosed, or bank owned, single family home in Miami Beach.  There continues to be a significant gap between the sought-after upper end luxury market and the less desireable, and generally non-waterfront properties.  Although waterfront luxury home sales are down significantly for Miami Beach overall (around 50% for first half of 2009), we’re seeing sales activity for turnkey homes that have come down in price significantly.

The most recent closed sales of waterfront homes in Miami Beach:

2046 North Bay Road Luxury Mansion – Drastically Reduced Waterfront Estate

2046 N.Bay Raod, Miami Beach

This was the best luxury waterfront deal in Miami Beach.  Priced to sell after being on the market for over 1,000 days! Featuring a private guard house – 80 ft infinity pool & private beach – elevator – generator – 4 car garage and much more.  This waterfront estate was featured on PlumTV.

My opinion as to why it sold :  Amazing architectural style & location on prestigious North Bay Road, amazing views, price reduced aggressively with lender approval.

Sold Price: $9,750,000
Original “For Sale” Price : $17,000,000 (5/2006)
Bedrooms: 7
Bathrooms: 11
House S.F.: 14,582
Land S.F.: 38,314
Sold Date: October 8, 2009
Discount from Asking Price: 42%
Search: North Bay Road Homes For Sale

The Venetian Island

127 East Rivo Alto, Miami Beach

Priced right!  Located on the best of the Venetian Islands-Rivo Alto Drive -and far in from the Venetian Causeway that links Miami and Miami Beach.  This 2 story home offered Frank Lloyd Wright inspired architecture. Open Floorplan, WATER VIEWS throughout, Updated Kitchen with high end appliances and well maintained bathrooms. Large backyard and pool which are perfect for entertaining or relaxing.

My opinion as to why it sold :  Great waterfront location, spacious floorplan, price reduced quickly and aggressively!

Sold Price: $2,040,000
Original “For Sale” Price : $2,590,000 (3/2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,361
Land S.F.: 10,500
Sold Date: October 16, 2009
Discount from Original Asking Price: 21%
Search: Venetian Island Homes For Sale

Hibiscus Island- Reduced Turnkey Waterfront Home

320 S. Hibiscus Dr, Miami Beach

This home has scenic bay and city views, tri-level and perfectly updated with attention to details.  Featuring marble and wood flooring throughout, with gourmet kitchen, stainless steel appliances, a beautiful and contemporary salt water bayfront pool, large master suite on the top level with incredible water views.  Two car garage, and ideally located on a quiet section of Hibiscus Island.

My opinion as to why it sold :  Great waterfront location in 24 hour guard gated community, amazing views, price reduced aggressively.

Sold Price: $2,500,000
Original “For Sale” Price : $3,250,000 (6/2008)
Bedrooms: 3
Bathrooms: 4
House S.F.: 3,590
Land S.F.: 10,500
Sold Date: September 29, 2009
Discount from Original Asking Price: 23%
Search: Hibiscus Island Homes for Sale

Source:  South Florida Regional MLS

Browse: Miami Beach Luxury Real Estate

Miami Beach single family homes (especially waterfront luxury homes) that are truly good deals continue to be in short supply. I’d like to take this opportunity to highlight two latest sales in the island communities off Miami Beach which are indicative of a price bottoming trend:

Di Lido Island Turnkey Home with Endless Water Views

Luxury Home - 830 W Dilido Dr, Miami Beach

Tropical paradise for that was on the market for sale for just 12 days at the final asking price of $2.9 Million. Master bedroom is surrounded by water and sunlight which opens to pool/deck. Wide bay views at the north tip  of Venetian Islands. The oversized living room, completely updated, is very comfortable and sunny. Courtyard/ circular driveway decorated  bytrimmed landscaping and wrought iron sliding gate. Fabulous private pool overlooking the open bay, dock and other boat equipment.

Key “Market Bottom” indicators:

“For Sale” Price: $2,950,000 (12 days on the market at this reduced price point)
Original List Price : $4,700,000 (July, 2008)
Previous Price Reduction: $3,450,000 (January, 2009)
Bedrooms: 4
Bathrooms: 3
House S.F.: 3,734
Land S.F.: 13,408
Closed Price per S.F.(Land): $194
Closed Price per S.F.(House): $698
Previous Sold Date: 2004 ($3,150,000)
Closed Price: $2,610,000 (Sept 2, 2009)
Discount from Latest Asking Price: 11.5%

Rivo Alto Island Waterfront Home – Completely Remodeled

25 East Rivo Alto home in Miami Beach

Over 100 linear feet on Biscayne Bay, on the preferred southern side of the Venetian Islands. This Mediterranean delight greets with a beautiful courtyard setting reminiscent of a European Villa. Gracious living areas and authentic touches throughout.  Upstairs are 3 bedrooms with Water Views in main home. The sale also included a separate two story adjacent guest house.

Key “Market Bottom” indicators:

“For Sale” Price: $2,590,000 (19 days on the market at this ACCURATE price point)
Bedrooms: 4
Bathrooms: 4
House S.F.: 3,894
Land S.F.: 13,382
Closed Price per S.F.(Land): $175
Closed Price per S.F.(House): $740
Previous Sold Date: 1998 ($950,000)
Closed Price: $2,350,000 (Sept 1, 2009)
Discount from Latest Asking Price: 9.2%

Biscayne Island- Incredible Land “Steal”

Miami Beach Venetian Island Home

Double lot on Biscayne Island this home needed to be updated. Biscayne Island is one of the Venetian Islands located on the Miami side. Located at the end of the street in a private cul de sac surrounded by million dollar homes. This one sold for well below land appraised value. Located just minutes from the new performing arts center, beaches, Lincoln Road, Ocean Drive, the airport, Downtown Miami, entertainment, shopping and more.

Key “Market Bottom” indicators:

“For Sale” Price: $700,000 (207 days on the market at this price point)
Original List Price : $1,500,000 (July, 2007)
Bedrooms: 3
Bathrooms: 2
House S.F.: 1,888
Land S.F.: 14,760
Closed Price per S.F.(Land): $38
Closed Price per S.F.(House): $301
Closed Price: $570,000 (July 24, 2009)
Discount from Latest Asking Price: 18.5%

What we’re seeing (again) is that Miami Beach waterfront and non-waterfront single family homes that are priced RIGHT have multiple offers and sell relatively quickly.

If you’re a potential buyer interested in purchasing, NOW is the time to pull the trigger if you qualify for a mortgage (count on putting 30% cash down of appraised value) or have the cash to invest in remodeling a home.  My advice is that under no circumstances should buyers be seeking to potentially “flip” or plan on making a profit on their property for AT LEAST five years.

Over the past month, my team and I have witnessed a significant increase in buyer activity for what I consider to be “A” real estate properties.  These can be quickly defined as:

- Miami Beach waterfront condos in buildings such as The Murano, Murano Grande, Icon South Beach, Portofino Tower, Continuum, and more affordable buildings such as The Waverly and The Floridian along West Avenue.

- The more popular luxury waterfront single family homes located on island communities such as The Venetian, Palm, Hibiscus, and Sunset Islands.

Whether it’s a single family home or condominium, an additional requirement for an “A” property in this Buyer’s market is that it be turnkey, or completely remodeled and updated.  In other words, the only additional expense a buyer has to be concerned with is moving in with their furniture and personal belongings.

It’s been our experience recently that single family homes and condos, when priced RIGHT, are bombarded with buyer interest and generally receive multiple offers.  We are witnessing a new surge of buyer interest in these “A” location properties in the South Beach and the greater Miami Beach real estate market.  Our real estate websites are also seeing a dramatic increase in traffic, with local cooperating brokers calling with inquiries and sending us multiple sales contracts.

All of these signs are indicators that the bottom is very close to being reached, and sales are beginning to come back, with prices to GRADUALLY follow as the “A” inventory diminishes.

A few examples of “A” real estate properties currently on the market:

Venetian Island – Greatly Reduced Waterfront Home

Rivo Alto home in Venetian Islands Miami Beach

Romance is felt throughout this Mediterranean waterfront home situated on 10,500 sf of land, spanning 60 feet of wide bay waterfront facing the Miami skyline. This timeless residence with unique architectural features contains over 4,117 sf of living area, with 5 bedrooms, 6 full and 2 half baths.

Current Asking Price: $3,199,000
Original Asking Price : $4,250,000
Bedrooms: 5
Bathrooms: 8
House S.F.: 4,117
Land S.F.: 10,500
Waterfront:  60 ft. with Dock

San Marino Island- Significantly Reduced Turnkey Waterfront Home

San Marino Waterfront Home in Venetian Islands

A fantastic opportunity to own an oversized waterfront lot.  This Mediterranean waterfront estate has 90 feet on the water, located on the Venetian Island causeway between Miami and Miami Beach.  Beautifully redone with gourmet kitchen, brazilian cherry hard wood flooring, fireplace, office/library, and award winning landscaping!

Current Asking Price: $2,950,000
Original Asking Price : $4,599,000
Bedrooms: 4
Bathrooms: 5
House S.F.: 3,370
Land S.F.: 15,750
Waterfront:  90 ft. with Dock

Portofino Tower Condo- Spectacular Atlantic Ocean, Fisher Island, and Miami Beach Skyline Views

View from the Miami Beach Portofino Tower Condo Unit #3402

This high floor condominium is a real flow through floorplan with two expansive and very private terraces with the most stunning views of Fisher Island, Downtown Miami, Miami Beach and the Ocean.   A Grand Foyer entrance, floor to ceiling  windows, a unique floorplan, and the most exquisite upgrades make this condomimium one of a kind.

Current Asking Price: $1,500,000
Original Asking Price : $1,795,000
Bedrooms: 2
Bathrooms: 3
Condo S.F.: 1,960